BTC at the moment gives mixed signals to traders and here is why
As we can see the yellow trend line at 9220 was the bottom trend line of a descending triangle,
That triangle got broken to the downside but price retested back up and now on it's way down, if BTC respects this trend the measure move will send it down to the mid4000s levels ,this is not news or surprise to those that shorted this market way back after we broke that triangle to the downside.
ON the other hand though , the way we have been going down due to aggressive selling is forming a bullish divergence in a descending channel due to exhaustion of the sell power. That's what happens when majority is eager to sell . - green trend line on chart and green line on RSI - this Divergence blurred the picture for the bears and gave hope to the bulls.
Now we touched the down slopping support of the same channel again but in a manner that the previous bullish divergence has now been cancelled-watch RED area of downtrend and RSI - means there is not enough buy volume coming in to these levels to aggressively send us back up and eventually out of the downtrend.
Still this is not an evidence we will go down . The future price action of the asset will be determined by the way it will behave the next couple of weeks on these levels,
We dont have the steam for a penetrating upwards move that's for sure, BUT if we stay on this levels and accumulate sideways forming a round bottom due to indecisive market we are going to form an ADAM and EVE double bottom-"A" and "B" - which historically is proven to be bullish not only for BTC but a common appearance as a final trigger that sends prices out of this type of consolidation we are currently trading in . O fcourse there is an infinite number of ways price can move from now and on but there are few out of the many that one should watch out for.
For example ,another scenario could be an impulse to the upside but at this very moment that will put the bulls at risk on running out of steam and will possibly create a right shoulder - S- of a head and shoulders pattern , which is what a BEAR now is actually betting on .
We can see how two different scenarios- broken down descending triangle - BEARISH - Descending channel - BULLISH - have been giving mixed signals , what one has to pay attention now on is the way BTC will move on the short term around these levels and to my opinion what will favor BULLS right now is not an impulse but a sideways smooth accumulation.- yellow curved line above "B"
As we can see the yellow trend line at 9220 was the bottom trend line of a descending triangle,
That triangle got broken to the downside but price retested back up and now on it's way down, if BTC respects this trend the measure move will send it down to the mid4000s levels ,this is not news or surprise to those that shorted this market way back after we broke that triangle to the downside.
ON the other hand though , the way we have been going down due to aggressive selling is forming a bullish divergence in a descending channel due to exhaustion of the sell power. That's what happens when majority is eager to sell . - green trend line on chart and green line on RSI - this Divergence blurred the picture for the bears and gave hope to the bulls.
Now we touched the down slopping support of the same channel again but in a manner that the previous bullish divergence has now been cancelled-watch RED area of downtrend and RSI - means there is not enough buy volume coming in to these levels to aggressively send us back up and eventually out of the downtrend.
Still this is not an evidence we will go down . The future price action of the asset will be determined by the way it will behave the next couple of weeks on these levels,
We dont have the steam for a penetrating upwards move that's for sure, BUT if we stay on this levels and accumulate sideways forming a round bottom due to indecisive market we are going to form an ADAM and EVE double bottom-"A" and "B" - which historically is proven to be bullish not only for BTC but a common appearance as a final trigger that sends prices out of this type of consolidation we are currently trading in . O fcourse there is an infinite number of ways price can move from now and on but there are few out of the many that one should watch out for.
For example ,another scenario could be an impulse to the upside but at this very moment that will put the bulls at risk on running out of steam and will possibly create a right shoulder - S- of a head and shoulders pattern , which is what a BEAR now is actually betting on .
We can see how two different scenarios- broken down descending triangle - BEARISH - Descending channel - BULLISH - have been giving mixed signals , what one has to pay attention now on is the way BTC will move on the short term around these levels and to my opinion what will favor BULLS right now is not an impulse but a sideways smooth accumulation.- yellow curved line above "B"